Accounts payable is an integral part of the way organizations operate. While recognized as a support in maintaining profitability, accounts payable has historically been done through manual processes. Why though? It’s inefficient, prone to error, and can be quite expensive. AP departments are integral to business processes, but does every task have to involve heavy lifting? Streamline traditional manual processes by migrating to an AP automation solution can transform the way problems can be solved within accounts payable departments.
Some best practices for introducing automation into your organization include:
Simplify the Workflow
Introducing automated technologies into your organization is a great way to streamline tedious and complicated processes. By simplifying the accounts payable workflow, you can save time as well money while reducing any errors that might arise from these actions! Automation should make this part of an employee’s job easier not harder – remember: it’s all about simplicity with automation in order for things go smoothly without much hassle on behalf of everyone involved.
Utilize Reporting
Greater insight into your organization’s data and reporting can be achieved with EZ Cloud, which will offer a wealth of information for predicting growth trajectory. How will your day-to-day differ when you are able to access invoice data real-time? Being able to see what is happening at any given time provides visibility into the process that wasn’t available before!
Implement Dual-Controls
In order to maintain a high level of security and accuracy, it is best practice to implement dual-controls when automating AP. This means that no one person has sole access and responsibility for processes.
Automate Wherever Possible
When accounts payable automation is done correctly, it should be invisible to your customers. In order to make this happen, integrate your accounts payable automation solution with your existing accounting software. This will make for a seamless transition and eliminates the need for duplicate data entry.
While it may not be possible to automate every manual process, automating as much as possible can have a significant impact on efficiency. Automation can help with tasks such as vendor invoice processing, payment approvals, and statement reconciliations.
Implement Early Payment Discounts
Early payment discounts are a great way to save money on accounts payable. By paying invoices early, you can take advantage of vendor discounts and improve your organization’s cash flow. Automated accounts payable can help you take advantage of early payment discounts by streamlining the invoice approval and payment process.
It is essential to look at the organization more closely by updating to an automated system and deciding where else there may be room for improvement. Accounts payable automation will offer better strategies for cash management, including early pay discounts.
Improve Communications
Effective communication is essential for any accounts payable team. Automated accounts payable can help improve communication by providing a centralized platform for invoice approvals, payments, and other accounts payable processes. This can help reduce the risk of errors and increase transparency.
The accounts payable team should have a clear understanding of the expectations and objectives of the organization. Implementing an automated accounts payable system can help improve communication and ensure that everyone is on the same page.
Stay on Top of Compliance
When automating accounts payable, it is important to maintain compliance with all relevant laws and regulations. Make sure you are keeping up with industry best practices to avoid any compliance issues.
Monitor Key Performance Indicators & Measure Progress
Monitoring key performance indicators (KPIs) is essential for any accounts payable team. Automated accounts payable can help you track KPIs such as payment terms, invoice processing time, and early payment discounts. By tracking these KPIs, you can identify areas of improvement and ensure that your accounts payable process is as efficient as possible.
As with any business process, it is important to monitor and measure the progress of accounts payable automation. Doing so will help you identify any areas that need improvement and ensure that the process is running smoothly.
Track the Entire Invoice Journey
Tracking your business through the EZ Cloud dashboard will enable you to keep track of the entire journey of invoices digitally. By integrating with EZ Cloud, accounts payable teams can keep records of transactions, payments, supplier relationships, invoices, approvals, payments, etc.
These are just a few of the best practices for accounts payable automation. By following these best practices, you can introduce accounts payable automation into your organization and improve your accounts payable process. accounts payable automation can save you time and money while reducing the likelihood of errors. Implementing accounts payable automation is the best way to streamline your accounts payable process, and EZ Cloud is the best way to automate your accounts payable processes. With EZ Cloud, you can simplify your workflow, utilize reporting, implement dual-controls, automate wherever possible, take advantage of early payment discounts, and improve communications.
Interested in learning more about AP Automation and how EZ Cloud AP automation can integrate with your current processes? Send us a message or schedule a call with us today.
